18th Jul 2005 16:16
Next PLC18 July 2005 RESTATEMENT OF FINANCIAL INFORMATION UNDER INTERNATIONAL FINANCIAL REPORTINGSTANDARDS NEXT plc has today released details of its consolidated financial informationfor the year ending 29 January 2005, as restated for the transition toInternational Financial Reporting Standards ('IFRS'). 1 INTRODUCTION NEXT plc and its subsidiary companies ('the Group') currently prepareconsolidated financial statements in accordance with UK Generally AcceptedAccounting Practice ('UK GAAP'). From 2005 the Group is required to prepare itsconsolidated financial statements under IFRS as adopted by the European Union('EU'). The Group's first annual report under IFRS will be for the financial year ending28 January 2006, and its first interim IFRS results will be for the six monthsending 30 July 2005. The Group's date of transition to IFRS is 1 February 2004,being the start of the previous period which will be presented as comparativeinformation. The Group has today published on its website details of the changes inaccounting policies arising from the adoption of IFRS, together with restatedfinancial information for the balance sheet at 1 February 2004, the incomestatements for the six months ended 31 July 2004 and the year ended 29 January2005, all of which were previously published under UK GAAP. The adoption of IFRS represents an accounting change only and does not affectthe operations or cash flows of the Group. 2 SUMMARY OF IMPACT Six months to 31 July 2004 Year to 29 January 2005 UK GAAP IFRS UK GAAP IFRSProfit before £m 171.9 171.8 441.1 442.5interest Profit after tax £m 112.5 113.4 301.0 305.4 Earnings per p 44.1 44.5 118.5 120.2share Net assets £m 170.5 144.6 272.7 276.5 The changes having the most significant impact on the restated figures are asfollows: •The recognition of operating lease incentives and premiums payable in the income statement over the full life of the lease •The recognition of a fair value charge for share based payments •The inclusion on the balance sheet of the net deficit of the defined benefit section of the NEXT Group Pension plan •The cessation of goodwill amortisation •The timing of the recognition of dividends •Related deferred tax adjustments The restated financial information is based on current IFRS, InternationalFinancial Reporting Interpretation Committee ('IFRIC') interpretations, andcurrent International Accounting Standards Board exposure drafts that areexpected to be issued as final standards and adopted by the EU such that theyare effective for the year ended 28 January 2006. These standards are subjectto ongoing review and endorsement by the EU and further IFRIC interpretations,and may therefore be subject to change. The Group's first IFRS financialstatements may consequently be prepared on the basis of accounting policies orpresentations which are different to those set out in this restatement document. In accordance with IFRS 1 First Time Adoption of International FinancialReporting Standards, the Group has elected not to restate comparativeinformation for the impact of IAS 32 and IAS 39 Financial Instruments. For theGroup's interim results for the six months ending 30 July 2005, the openingbalance sheet at 30 January 2005 will be restated in accordance with therequirements of these standards. 3 FURTHER INFORMATION Full details of the restated financial information are available from theGroup's website (http://www.next.co.uk/pdfs/IFRSJul05final.pdf) and include: •An explanation of significant adjustments •Restated Consolidated Income Statements and Statements of Recognised Income and Expense for the six months ended 31 July 2004 and the year ended 29 January 2005 •Restated Consolidated Balance Sheets as at 1 February 2004, 31 July 2004 and 29 January 2005 •Supporting reconciliations between previously published UK GAAP and restated IFRS financial information •A summary of significant accounting policies under IFRS The Group Finance Director, David Keens, will host a conference call on Monday25 July at 10.00 BST. To participate in the call, please dial 0800 358 4501 andwhen prompted enter the participant PIN 696701. A recording of the call may be accessed for a period of 7 days by dialling 0207081 9440 and entering the participant PIN 278724, recording code 456987. For further information, please contact: David Keens, Group Financial DirectorAndrew McKinlay, Company SecretaryNEXT plcTel: 08454 567777 Alistair Makinnon-MussonPhilip Dennisgcg hudson sandlerTel: 020 7796 4133Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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